Data Center Tax Incentives by State

37 states have a tax break written specifically for data centers, most often a sales and use tax exemption on servers and equipment. This table lists 51 of them with their investment and job thresholds, duration, sunset date and the statute. 6 are currently suspended or closed to new applicants (AZ, IL, MA, NJ, OH, OR).

Megawatt Index Editorial Team

Updated October 16, 2026Dataset51 incentives

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Data center tax incentives by state

Alabama	Data processing center abatement under Chapter 9B (Tax Incentive Reform Act of 1992): noneducational property taxes	Property tax abatement	Active	Ala. Code 40-9B-3, 40-9B-4, 40-9B-4.1
Alabama	Data processing center abatement under Chapter 9B (Tax Incentive Reform Act of 1992): construction related sales and use taxes	Sales and use tax exemption	Active	Ala. Code 40-9B-3, 40-9B-4, 40-9B-4.1
Arizona	Computer data center tax relief (transaction privilege and use tax deductions for computer data center equipment)	Sales and use tax exemption	Suspended	A.R.S. 41-1519; 42-5061(B)(23); also 42-5075, 42-5159 and 42-6004
Arkansas	Sales and use tax exemption for qualified data centers and qualified large data centers	Sales and use tax exemption	Active	Ark. Code Ann. 26-52-456
Connecticut	Qualified data center sales and use tax exemption	Sales and use tax exemption	Active	Conn. Gen. Stat. 32-286(d)
Connecticut	Qualified data center property tax exemption	Property tax abatement	Active	Conn. Gen. Stat. 32-286(e)
Florida	Data center property sales and use tax exemption	Sales and use tax exemption	Active	Fla. Stat. 212.08(5)(r)
Georgia	High-technology data center equipment sales and use tax exemption	Sales and use tax exemption	Active	O.C.G.A. 48-8-3(68.1)
Illinois	Data Center Investment program (certificates of exemption from state and local sales and use taxes)	Sales and use tax exemption	Suspended	20 ILCS 605/605-1025
Indiana	Property tax exemption for enterprise information technology equipment at data centers	Property tax abatement	Active	Ind. Code 6-1.1-10-44
Indiana	Gross retail and use tax exemption for data center equipment	Sales and use tax exemption	Active	Ind. Code 6-2.5-15
Iowa	Data center business sales and use tax exemption (equipment, electricity and backup power fuel)	Sales and use tax exemption	Active	Iowa Code 423.3(95)
Iowa	Data center business property tax exemption	Property tax abatement	Active	Iowa Code 427.1(37)
Kansas	SB 98 Data Center Sales Tax Exemption	Sales and use tax exemption	Active	K.S.A. 74-50,331 to 74-50,333; K.S.A. 79-3606(xxxx)
Kentucky	Qualified data center project sales and use tax exemption	Sales and use tax exemption	Active	KRS 139.499; KRS 154.20-220 to 154.20-229
Louisiana	Data center facility equipment sales and use tax exemption	Sales and use tax exemption	Active	La. R.S. 47:305.73
Maine	Business Equipment Tax Exemption: data centers excluded if they begin operations on or after August 1, 2026	Property tax abatement	Repealed	36 M.R.S. 691 (definition of eligible property, excluded property item (10)), as amended by PL 2025, c. 768
Maryland	Data Center Maryland Sales and Use Tax Exemption	Sales and use tax exemption	Active	Md. Code, Tax-General 11-239
Maryland	Local option property tax reduction for qualified data center personal property	Property tax abatement	Active	Md. Code, Tax-Property 7-248
Massachusetts	Massachusetts Qualified Data Center Sales and Use Tax Exemption	Sales and use tax exemption	Suspended	M.G.L. c. 64H, s. 6(zz); M.G.L. c. 23A, s. 70; 400 CMR 9.00
Michigan	Qualified (colocation) data center sales and use tax exemption	Sales and use tax exemption	Active	MCL 205.54ee(1) to (3) (sales tax); MCL 205.94cc (use tax)
Michigan	Enterprise data center sales and use tax exemption	Sales and use tax exemption	Active	MCL 205.54ee (sales tax); MCL 205.94cc (use tax)
Minnesota	Data center sales and use tax exemption (qualified, refurbished and large-scale data centers)	Sales and use tax exemption	Active	Minn. Stat. 297A.68, subd. 42
Minnesota	Data center electricity sales tax exemption	Electricity tax exemption	Repealed	Minn. Stat. 297A.68, subd. 42(b) (2024)
Mississippi	Sales tax exemption on electricity and fuel sold to qualifying data centers	Electricity tax exemption	Active	Miss. Code Ann. 27-65-107(f)
Mississippi	Data center enterprise tax exemptions	Sales and use tax exemption	Active	Miss. Code Ann. 57-113-21 and 57-113-25
Missouri	Data Center Sales Tax Exemption Program (data storage centers)	Sales and use tax exemption	Active	RSMo 144.810
Montana	Class seventeen property: reduced property tax rate for qualified data centers	Property tax abatement	Active	Mont. Code Ann. 15-6-162
Nebraska	ImagiNE Nebraska Act personal property tax exemption for data centers	Property tax abatement	Active	Neb. Rev. Stat. 77-6831(8); 77-6827(6)
Nevada	Partial abatement of personal property taxes at a new or expanded data center	Property tax abatement	Active	Nev. Rev. Stat. 361.0683; 360.754
Nevada	Partial abatement of sales and use taxes on eligible machinery or equipment used at a new or expanded data center	Sales and use tax exemption	Active	Nev. Rev. Stat. 374.356; 360.754
New Jersey	Next New Jersey Program - AI (tax credits; eligible businesses include the large-scale artificial intelligence data center industry)	Other	Suspended	Next New Jersey Program Act, P.L. 2024, c. 49; P.L. 2026, c. 77 (S4390)
North Carolina	Sales and use tax exemption for computer software sold to a datacenter operator and used within the datacenter	Sales and use tax exemption	Active	N.C. Gen. Stat. 105-164.13(43a)b.
North Carolina	Sales and use tax exemption for electricity and eligible business property at an eligible internet datacenter	Sales and use tax exemption	Active	N.C. Gen. Stat. 105-164.13(55); 105-164.3(79)
North Carolina	Sales and use tax exemption for electricity and datacenter support equipment at a qualifying datacenter	Sales and use tax exemption	Active	N.C. Gen. Stat. 105-164.13(55a); 105-164.3(201)
North Dakota	Sales and use tax exemption for enterprise information technology equipment and computer software used in a qualified data center	Sales and use tax exemption	Active	N.D. Cent. Code 57-39.2-04.17
Ohio	Data center sales and use tax exemption (computer data center equipment)	Sales and use tax exemption	Suspended	Ohio Rev. Code 122.175
Oregon	Enterprise zone property tax exemption: moratorium on new data center authorizations and no extended exemption periods for data centers	Property tax abatement	Suspended	Oregon Laws 2026, chapter 50 (Enrolled HB 4084), sections 9, 11a to 11c; ORS 285C.140, 285C.160
Pennsylvania	Computer Data Center Equipment Exemption Program	Sales and use tax exemption	Active	Tax Reform Code of 1971 (Act 2 of 1971), Article XXIX-D; Act 84 of 2016, Act 13 of 2019, Act 25 of 2021
South Carolina	Sales and use tax exemption for datacenter computer equipment, software and electricity	Sales and use tax exemption	Active	S.C. Code Ann. 12-36-2120(79)
Tennessee	Reduced 1.5% state sales tax rate on electricity for qualified data centers	Electricity tax exemption	Active	Tenn. Code Ann. 67-6-206(c)
Tennessee	Qualified data center sales and use tax exemption for computers, software, backup power infrastructure and cooling equipment	Sales and use tax exemption	Active	Tenn. Code Ann. 67-6-102(25), (86); 67-6-206(c)
Texas	State sales and use tax exemption for qualifying data centers	Sales and use tax exemption	Active	Tex. Tax Code 151.359; 151.317(a)(9)
Texas	State sales and use tax exemption for qualifying large data center projects	Sales and use tax exemption	Active	Tex. Tax Code 151.3595
Utah	Sales and use tax exemption for machinery and equipment purchased or leased by a qualifying data center or its occupant	Sales and use tax exemption	Active	Utah Code Ann. 59-12-104(84); 59-12-102 (definition)
Virginia	Retail sales and use tax exemption for data center computer equipment and enabling software	Sales and use tax exemption	Active	Va. Code Ann. 58.1-609.3(18), (19)
Washington	Sales and use tax exemption for eligible server equipment and power infrastructure at rural computer data centers	Sales and use tax exemption	Active	Rev. Code Wash. 82.08.986; 82.12.986
Washington	Sales and use tax exemption pilot for eligible server equipment and power infrastructure at data centers in counties with populations over 800,000	Sales and use tax exemption	Active	Rev. Code Wash. 82.08.9861; 82.12.9861
West Virginia	High impact data center property tax treatment (state valuation, tax increment distribution, no PILOT or TIF)	Other	Active	W. Va. Code 11-6N-1 to 11-6N-5 (2025 HB 2014)
Wisconsin	Sales and use tax exemption for property used at a qualified data center	Sales and use tax exemption	Active	Wis. Stat. 77.54(70); 238.40
Wyoming	Sales tax exemption for data processing services center computer equipment, software, power and cooling equipment	Sales and use tax exemption	Active	Wyo. Stat. 39-15-105(a)(viii)(S); 39-15-101(a)(xliv)

Terms by state

Alabama: Data processing center abatement under Chapter 9B (Tax Incentive Reform Act of 1992): noneducational property taxes (active)

Minimum investment: No minimum stated for eligibility; the abatement period depends on aggregate capital investment within 10 years: up to $200,000,000 (10 years), over $200,000,000 (20 years), and for abatements granted before January 1, 2027, over $200,000,000 within 10 years and over $400,000,000 within 20 years (30 years)
Jobs: not less than 20 new jobs (data processing center definition)
Wages: average annual total compensation, including benefits, of the new jobs not less than $40,000
Other requirements: Education taxes are not abated. For abatements granted on or after January 1, 2027 to a data processing center with a total peak demand of 100 megawatts or greater, state noneducational ad valorem taxes are not abated beyond the date the property is placed in service. For abatements granted on or after January 1, 2027, an additional 10 years (30 years total) is available with a binding qualified local investment agreement approved by the Department of Revenue, the Department of Commerce and the local governing body.
How long it lasts: 10, 20 or 30 years by investment tier for abatements granted before January 1, 2027; 10 or 20 years, plus up to 10 additional years with a qualified local investment agreement, for abatements granted on or after January 1, 2027
Sunset: No Act 2012-210 incentive for any company filing an application after July 31, 2032 (Ala. Code 40-9B-4.1)
Latest change: Act 2026-573 (HB399, 2026), effective June 1, 2026: limits the maximum exemption period to 20 years for abatements granted on or after January 1, 2027 (30 with a qualified local investment agreement), ends abatement of state noneducational property taxes after the placed-in-service date for centers with total peak demand of 100 megawatts or greater, and extends the application sunset from July 31, 2028 to July 31, 2032. Does not apply to projects executed before the act's effective date.

Alabama: Data processing center abatement under Chapter 9B (Tax Incentive Reform Act of 1992): construction related sales and use taxes (active)

Minimum investment: No minimum stated for eligibility; the abatement period depends on aggregate capital investment within 10 years: up to $200,000,000 (10 years), over $200,000,000 (20 years), and for abatements granted before January 1, 2027, over $200,000,000 within 10 years and over $400,000,000 within 20 years (30 years)
Jobs: not less than 20 new jobs (data processing center definition)
Wages: average annual total compensation, including benefits, of the new jobs not less than $40,000
Other requirements: ALDOR states the 0.75% state portion and educational local sales and use taxes are not abated. For data processing centers the abatement covers taxable services and acquisitions of property throughout the maximum exemption period, including computers, servers, cooling, power infrastructure, backup generation and batteries. For abatements granted on or after January 1, 2027 to a center with total peak demand of 100 megawatts or greater, only computers, servers, licensed software, computing, networking and storage equipment, cooling systems and other operating equipment stay eligible for the full period; state tax on other construction purchases is not abated after the placed-in-service date unless the Governor abates it for a center in a targeted county (Ala. Code 40-18-376.1).
How long it lasts: Throughout the applicable maximum exemption period (10, 20 or 30 years by investment tier; 20 years plus up to 10 additional years for abatements granted on or after January 1, 2027)
Sunset: No Act 2012-210 incentive for any company filing an application after July 31, 2032 (Ala. Code 40-9B-4.1)
Latest change: Act 2026-573 (HB399, 2026), effective June 1, 2026: narrows the state sales and use tax abatement for centers with total peak demand of 100 megawatts or greater granted abatements on or after January 1, 2027, directs the resulting state sales tax on building materials, power infrastructure, backup generation and battery systems to the State General Fund, and extends the application sunset to July 31, 2032.

Arizona: Computer data center tax relief (transaction privilege and use tax deductions for computer data center equipment) (suspended)

Minimum investment: On or before the fifth anniversary of certification: $25,000,000 of new investment in a county with a population of 800,000 or less, or $50,000,000 in a county with a population of more than 800,000
Other requirements: Certification by the Arizona Commerce Authority. Qualified colocation tenants (at least 500 kilowatts per month for two or more years) receive the same relief. The data center may not generate electricity for resale or provide or sell electricity outside the data center. A sustainable redevelopment project (new build of at least $200,000,000 with a green building certification, or reuse of a vacant or newly certified existing facility) gets a 20-year qualification period.
How long it lasts: Through the end of the tenth full calendar year after the year the certification takes effect (twentieth for a sustainable redevelopment project)
Sunset: The Authority shall not certify any new computer data center that applies after December 31, 2033; no new applications accepted July 1, 2026 through June 30, 2029 (Laws 2026, Ch. 140, Sec. 31)
Latest change: Laws 2026, Ch. 140 (HB 4168, taxation omnibus), Sec. 31, approved June 13, 2026: from July 1, 2026 through June 30, 2029 the Arizona Commerce Authority may not accept applications for any new computer data center and no new computer data centers qualify for tax relief under 41-1519; retroactive to June 30, 2026; the section is repealed after June 30, 2029. Separate 2026 repeal bills (SB1463, SB1467, HB2631) were held in committee.

Arkansas: Sales and use tax exemption for qualified data centers and qualified large data centers (active)

Minimum investment: Qualified data center: $100,000,000 at the facility no later than 5 years after construction of the facility commences. Qualified large data center (two or more nonadjacent locations connected by fiber): $2,000,000,000 no later than 10 years after construction commences
Wages: Aggregate annualized compensation of at least $1,000,000 ($3,000,000 for a qualified large data center), paid directly or indirectly, including by contractors, to individuals performing services in the state over the 2 calendar years following the calendar year operations commenced
Other requirements: Not primarily engaged in adding virtual currency transactions to a distributed ledger; positive cost-benefit analysis from the Arkansas Economic Development Commission; application to and certificate from the Department of Finance and Administration; annual certification. Exempts data center equipment, eligible data center costs, related services and electricity used by the data center.
How long it lasts: None stated; the certificate is revoked if compensation falls below the requirement
Sunset: none stated
Latest change: Act 548 of 2025 (HB1444), approved April 10, 2025: lowered the qualified data center investment requirement from $500,000,000 to $100,000,000, added the qualified large data center category, and moved applications from the Arkansas Economic Development Commission to the Department of Finance and Administration; Section 1 effective on the first day of the calendar quarter following the act's effective date. The exemption was created by Act 819 of 2023.

Connecticut: Qualified data center sales and use tax exemption (active)

Minimum investment: Qualified investment on or before the fifth anniversary of the agreement of at least $50 million in an enterprise zone or federal qualified opportunity zone, or $200 million elsewhere
Other requirements: Agreement with the Commissioner of Economic and Community Development; annual fee of up to $50,000 during the five-year qualifying period; host municipality fee agreement required before construction. Exempts qualified data center equipment, certain services and all electricity used by the qualified data center; applies to owners, operators and colocation tenants (two years or more).
How long it lasts: 20 years from the agreement's effective date; extended to 30 years with a qualified investment of at least $200 million (enterprise zone or opportunity zone) or $400 million (elsewhere)
Sunset: none stated
Latest change: Created by P.A. 21-1 (2021), effective July 1, 2021; no amendment shown in the statutes revised to January 1, 2025 or the 2026 Supplement. 2026 SB 245, which would have barred new applications from July 1, 2026, was not enacted (last action: referred to the Finance, Revenue and Bonding Committee).

Connecticut: Qualified data center property tax exemption (active)

Minimum investment: Qualified investment on or before the fifth anniversary of the agreement of at least $50 million in an enterprise zone or federal qualified opportunity zone, or $200 million elsewhere
Other requirements: Exempts real property, buildings and structures at a qualified data center and enterprise information technology equipment; requires a negotiated host municipality fee agreement with each host municipality before construction. Centers meeting the 30-year investment level are also exempt from any future state financial transactions tax for 30 years.
How long it lasts: 20 years from the agreement's effective date; extended to 30 years with a qualified investment of at least $200 million (enterprise zone or opportunity zone) or $400 million (elsewhere)
Sunset: none stated
Latest change: Created by P.A. 21-1 (2021), effective July 1, 2021; no amendment shown in the statutes revised to January 1, 2025 or the 2026 Supplement. 2026 SB 245, which would have barred new applications from July 1, 2026, was not enacted (last action: referred to the Finance, Revenue and Bonding Committee).

Florida: Data center property sales and use tax exemption (active)

Minimum investment: Cumulative capital investment of $150 million or more by the data center's owners and tenants
Other requirements: Critical IT load of 100 megawatts or higher, and 1 megawatt or higher dedicated to each owner or tenant; requirements met no later than 5 years after construction begins; data center constructed on or after July 1, 2017; temporary then permanent exemption certificate from the Department of Revenue, with professional engineer and CPA declarations. Data center property includes electricity used exclusively at the data center.
How long it lasts: Permanent certificate remains valid while the facility operates as a qualifying data center, with Department review every 5 years
Sunset: After June 30, 2037, the Department may not issue a temporary tax exemption certificate
Latest change: Ch. 2025-208, Laws of Florida, s. 46, effective August 1, 2025: raised the critical IT load threshold from 15 to 100 megawatts and moved the certificate cutoff from June 30, 2027 to June 30, 2037.

Georgia: High-technology data center equipment sales and use tax exemption (active)

Minimum investment: Aggregate expenditures over any consecutive seven-year period between July 1, 2018 and December 31, 2031: $250 million (county population greater than 50,000), $75 million (greater than 30,000 and less than 50,001), or $25 million (less than 30,001)
Jobs: 25 new quality jobs (county population greater than 50,000), 10 (greater than 30,000 and less than 50,001), or 5 (less than 30,001)
Wages: New quality jobs as defined in O.C.G.A. 48-7-40.17(a)(2)
Other requirements: Certificate of exemption from the Commissioner of Revenue, issued when the data center will more likely than not meet the minimum investment threshold; applies to high-technology data center equipment bought by the data center or its customers
How long it lasts: Purchases from July 1, 2018 through December 31, 2031
Sunset: Exemption period ends December 31, 2031; paragraph repealed January 1, 2032
Latest change: HB 1291 (2022, Act 842) extended the period from 2028 to December 31, 2031 and set the current tiered job and investment thresholds. HB 1192 (2024), which would have suspended new certificates through June 30, 2026, was vetoed. In 2026, SB 410 (repeal) passed the Senate but stalled in the House; SB 408, HB 559 and a Senate Finance substitute to HB 186 that would have repealed or shortened the exemption were not enacted.

Illinois: Data Center Investment program (certificates of exemption from state and local sales and use taxes) (suspended)

Minimum investment: $250,000,000 over a 60-month period, collectively by the data center operator and tenants
Jobs: At least 20 full-time or full-time equivalent new jobs over 60 months
Wages: Total compensation equal to or greater than 120% of the average wage paid to full-time employees in the county, as determined by the U.S. Bureau of Labor Statistics
Other requirements: Within 2 years after being placed in service, certify carbon neutrality or a listed green building certification (BREEAM, ENERGY STAR, Envision, ISO 50001, LEED, Green Globes, UL 3223 or an approved equivalent); memorandum of understanding with DCEO; contractors must meet Procurement Code Section 30-22 responsible bidder requirements and a project labor agreement. Also includes an income tax credit for construction wages in underserved areas (35 ILCS 5/229), which DCEO describes as 20% of wages.
How long it lasts: Certificate of exemption may not exceed 20 calendar years
Sunset: No new certificates after July 1, 2029 (statute)
Latest change: DCEO states that, per the Governor's directive on June 5, 2026, it will no longer process applications as of July 1, 2026. This is an administrative pause; the statute still allows new certificates until July 1, 2029. P.A. 104-468 (effective June 16, 2026) made only a technical change to the section.

Indiana: Property tax exemption for enterprise information technology equipment at data centers (active)

Minimum investment: At least $25,000,000 in real and personal property at the facility or data center after June 30, 2012, by the entity, lessor and lessees in aggregate
Wages: Average wage of employees in the county or municipality operating the facility at least 125% of the county average wage
Other requirements: Agreement with the fiscal body of a county without a consolidated city (unincorporated territory only) or a municipality; covers servers, routers, enterprise or data center class networking equipment, and generators and uninterrupted power supply equipment purchased after June 30, 2012
How long it lasts: Period specified in the agreement
Sunset: none stated
Latest change: Last amended by P.L.256-2019

Indiana: Gross retail and use tax exemption for data center equipment (active)

Minimum investment: Minimum qualified investment on or before the fifth anniversary of the specific transaction award certificate: $150,000,000 (county population greater than 100,000), $100,000,000 (greater than 50,000 and not more than 100,000), or $25,000,000 (not more than 50,000)
Other requirements: Specific transaction award certificate from and agreement with the Indiana Economic Development Corporation; one or more buildings housing networked servers in one physical location. For certificates and local permits issued after June 30, 2026, the user must pay the county or municipality up to 1% of the state sales and use tax not paid on electricity billed each quarter.
How long it lasts: Certificate expires not later than 25 years after issuance, or 50 years if the qualified investment is $750,000,000 or greater
Sunset: none stated
Latest change: P.L.157-2026, SEC.100 added IC 6-2.5-15-15.5 (local payment of up to 1% of unpaid state sales and use tax on electricity for certificates and permits issued after June 30, 2026). P.L.178-2025 extended the chapter to quantum computing research, advanced computing and defense infrastructure networks, effective January 1, 2026.

Iowa: Data center business sales and use tax exemption (equipment, electricity and backup power fuel) (active)

Minimum investment: $200 million in an Iowa physical location within the first six years of operation
Other requirements: Physical location of at least 5,000 square feet; comply with sustainable design and construction standards under Iowa Code 103A.8B; register with the Department of Revenue, file an annual report by January 31 and present an annual exemption certificate; lessees eligible; failing to meet 80% of the investment within six years forfeits the exemption with tax, penalty and interest due
How long it lasts: Equipment: none stated. Electricity and backup power generation fuel: no limit for property operating before June 6, 2025; for new construction or additions completed on or after June 6, 2025, the first 10 years of operation (in a city of more than 30,000 people) or first 15 years (elsewhere)
Sunset: none stated
Latest change: Iowa Code 2026 (reflecting the 2025 session) limits the electricity and backup fuel exemption for construction or additions completed on or after June 6, 2025 and adds annual reporting from January 31, 2026. No 2026 Iowa Act with data center in its title.

Iowa: Data center business property tax exemption (active)

Minimum investment: Must meet the requirements of Iowa Code 423.3(95), including $200 million within the first six years
Other requirements: Exempts property other than land, buildings and other improvements used by a qualifying data center business: computers and equipment, cooling, power infrastructure and substations not assessed under chapter 437A, racking and cabling, backup generation and battery systems
How long it lasts: Begins with the assessment year the property is first assessed or the initial lease term begins; no end date stated
Sunset: none stated

Kansas: SB 98 Data Center Sales Tax Exemption (active)

Minimum investment: $250,000,000 in eligible data center costs in the aggregate by the fifth year of operations
Jobs: At least 20 new jobs at the qualified data center within two calendar years after the commencement of operations (new jobs filled by Kansas residents)
Other requirements: Application to and agreement with the Secretary of Commerce; commit to begin construction within 10 years of the agreement; commit to purchase electricity for 10 years from the certificated public utility; water conservation commitments; approval by the Fusion Center Oversight Board before any public financial assistance; eligible data center costs do not include the cost of electricity; telecommunications carriers, wireless service providers and video service providers are excluded
How long it lasts: 20 years after the date of commencement of operations
Sunset: none stated
Latest change: Enacted 2025 (SB 98, L. 2025, ch. 124); applies to qualified purchases made on or after July 1, 2025

Kentucky: Qualified data center project sales and use tax exemption (active)

Minimum investment: By the fifth anniversary of preliminary approval: $450,000,000 in a county with population of 100,000 or more; $100,000,000 in a county over 50,000 and under 100,000; $25,000,000 in a county of not more than 50,000; $150,000,000 for a project organizer
Other requirements: Memorandum of agreement with the Kentucky Economic Development Finance Authority; excludes projects that replace existing Kentucky data centers, apply for or accept other KRS Chapter 154 incentives, or benefit from the electricity exemption for commercial cryptocurrency mining; annual reporting of exempted tax beginning September 1, 2025, which is not treated as confidential
How long it lasts: Agreement term not to exceed 50 years (capital investment of $450,000,000 or more), 25 years (less than $450,000,000), or 15 years (project organizer)
Sunset: none stated
Latest change: Created by 2024 Ky. Acts ch. 166, effective July 15, 2024; definitions in KRS 154.20-220 amended by 2025 Ky. Acts ch. 98, effective June 27, 2025

Louisiana: Data center facility equipment sales and use tax exemption (active)

Minimum investment: Sworn attestation of intent to expend at least two hundred million dollars in new capital investment in Louisiana on or after July 1, 2024, and before July 1, 2029
Jobs: Sworn attestation that the project will create a minimum of fifty new direct, permanent jobs in Louisiana
Other requirements: Certification as an approved data center facility by Louisiana Economic Development and an agreement with LED; applies to state and local sales and use taxes on eligible data center equipment and on development, construction, lease, repair, refurbishment, expansion and renovation expenditures; only purchases made on or after July 1, 2024; a Direct Payment Number is issued
How long it lasts: Agreement with an initial term of twenty years; LED may renew for an additional ten years
Sunset: none stated
Latest change: 2024: Acts 2024, No. 730 (eff. July 1, 2024) and Acts 2024, 3rd Ex. Sess., No. 11 (eff. Dec. 4, 2024) amended the section; current text is an exemption

Maine: Business Equipment Tax Exemption: data centers excluded if they begin operations on or after August 1, 2026 (repealed)

Other requirements: The general business equipment property tax exemption no longer covers property located in a data center (or the data center portion of a facility) that begins operations on or after August 1, 2026, including expansions or projects after that date. Begins operations means operational computer and networking equipment performing data processing, storage, cloud computing or similar services.
Sunset: Exclusion applies to data centers beginning operations on or after August 1, 2026
Latest change: PL 2025, c. 768, sections 1 to 4 amended 36 M.R.S. 691 to exclude new data centers

Maryland: Data Center Maryland Sales and Use Tax Exemption (active)

Minimum investment: Within 3 years after applying: at least $2,000,000 in qualified data center personal property in a Tier I area, or at least $5,000,000 elsewhere in the State
Jobs: At least five qualified positions
Wages: Qualified positions must pay at least 150% of the State minimum wage
Other requirements: Application to and certification by the Department of Commerce; certificate of eligibility issued by the Comptroller and renewed each year; Tier I area means a Tier I county or an opportunity zone; colocated or hosting and enterprise data centers both qualify; Commerce states electricity is not exempt
How long it lasts: Certificate renewable each year for up to 10 consecutive years, or up to 20 consecutive years if at least $250,000,000 is invested in qualified data center personal property
Sunset: none stated
Latest change: Created by Chapter 640 (SB 397, 2020) per Commerce. 2026 HB 560 proposed repealing this exemption; the legislature's bill page shows it stopped at a House committee hearing on Feb. 12, 2026 and it was not enacted

Maryland: Local option property tax reduction for qualified data center personal property (active)

Minimum investment: Not stated in this section; uses the Tax-General Article definitions of qualified data center and qualified data center personal property
Other requirements: A county or municipal governing body may, by law, reduce or eliminate the percentage of assessment of qualified data center personal property subject to its property tax; the local law must be submitted to the Department (copies received by May 1 take effect the following taxable year)
How long it lasts: Not stated
Sunset: none stated
Latest change: 2026 HB 560 proposed repealing this authorization; not enacted

Massachusetts: Massachusetts Qualified Data Center Sales and Use Tax Exemption (suspended)

Minimum investment: At least $50,000,000 in qualified data center costs within a 10-year period from the effective date of certification
Jobs: Maintains a minimum of 100 jobs in the commonwealth
Other requirements: One or more data center buildings totaling not less than 100,000 square feet on a single parcel or contiguous parcels; constructed or substantially refurbished; uninterruptible power or generator backup, fire suppression and enhanced security; certification by the Secretary of Economic Development; annual report by September 1; covers eligible data center equipment, computer software, electricity used in operations, and construction costs
How long it lasts: 20-year qualification period from the effective date of certification; each later building gets 20 full calendar years from the start of its commercial operations
Sunset: none stated
Latest change: Created by Chapter 238 of the Acts of 2024. Statute unchanged, but after the Healey Administration's June 25, 2026 data center framework EOED states it will not accept applications for certification until further notice

Michigan: Qualified (colocation) data center sales and use tax exemption (active)

Jobs: Statewide aggregate condition: qualified data centers, colocated businesses and contractors must have established at least 400 data center industry jobs by January 1, 2022 and at least 1,000 by January 1, 2026, counted since January 1, 2016
Other requirements: Owner or operator must receive 75% or more of its revenue from colocated businesses that are not affiliates; covers data center equipment sold to the owner or operator, colocated businesses, and contractors affixing equipment to the facility
How long it lasts: January 1, 2016 through December 31, 2050
Sunset: December 31, 2050
Latest change: 2024 PA 181 and 207 extended the exemption through December 31, 2050. The Michigan Strategic Fund reported on December 12, 2025 that 2,972 qualifying jobs had been created since January 1, 2016, and Treasury confirmed the exemption continues

Michigan: Enterprise data center sales and use tax exemption (active)

Minimum investment: Aggregate capital investment of not less than $250,000,000.00
Jobs: A minimum of 30 qualified new jobs in this state
Wages: Annual wage equal to 150% or more of the prosperity region median wage
Other requirements: Certificate from the Michigan Strategic Fund; criteria met within the lesser of 6 years or the applicant's time frame; green building certification within 3 years of being placed in service; municipal water from a system with available capacity; clean energy equivalent to 90% of forecasted annual electricity usage; no state or local property tax benefit unless each affected local unit approves by resolution; repayment if the certificate is revoked within 10 years of issuance
How long it lasts: Through December 31, 2050, or through December 31, 2065 for a facility on a brownfield plan site or a former power plant site
Sunset: No new certificates after December 31, 2029
Latest change: Created by 2024 PA 207 (sales tax, effective April 17, 2025) and 2024 PA 181 (use tax, effective April 2, 2025)

Minnesota: Data center sales and use tax exemption (qualified, refurbished and large-scale data centers) (active)

Minimum investment: $30,000,000 within a 48-month period (qualified data center); $50,000,000 within a 24-month period (qualified refurbished data center); $250,000,000 collectively by the facility and its tenants within a 60-month period beginning after June 30, 2025 (qualified large-scale data center)
Wages: Prevailing wage for laborers and mechanics constructing or refurbishing a qualified large-scale data center
Other requirements: At least 25,000 square feet; constructed or substantially refurbished after June 30, 2012; uninterruptible power or generator backup, fire suppression and enhanced security; certification by DEED; tax is paid and then refunded; large-scale data centers must certify a green building certification within three years of being placed in service or repay the exemption
How long it lasts: Purchases made within 35 years of the date of the first qualifying purchase
Sunset: Allowed for data centers certified before July 1, 2042
Latest change: 2025: amended by Laws 2025, 1st Spec. Sess. ch. 12, s. 17 and ch. 13, art. 3, s. 4, adding the qualified large-scale data center category with prevailing wage and green building requirements and removing the electricity exemption for sales and purchases after June 30, 2025

Minnesota: Data center electricity sales tax exemption (repealed)

Minimum investment: Applied to qualified data centers ($30,000,000 within 48 months) and qualified refurbished data centers ($50,000,000 within 24 months)
Other requirements: Exempted electricity used or consumed in the operation of a qualified data center or qualified refurbished data center
Sunset: Repealed for sales and purchases made after June 30, 2025
Latest change: Struck by Laws 2025, 1st Spec. Sess. ch. 13, art. 3, s. 4, effective for sales and purchases made after June 30, 2025

Mississippi: Sales tax exemption on electricity and fuel sold to qualifying data centers (active)

Minimum investment: Data center must meet the business enterprise criteria in Section 57-113-21 ($20,000,000 capital investment)
Jobs: Per Section 57-113-21: a minimum of twenty (20) new, full-time jobs
Wages: Per Section 57-113-21: average annual salary of not less than 125% of the average annual state wage
Other requirements: Exempts sales of electricity, current, power, steam, coal, natural gas, liquefied petroleum gas or other fuel to a data center meeting the criteria in Section 57-113-21
How long it lasts: none stated
Sunset: none stated
Latest change: Data centers added by 2019 SB 2271

Mississippi: Data center enterprise tax exemptions (active)

Minimum investment: Minimum capital investment in this state of Twenty Million Dollars ($20,000,000.00)
Jobs: A minimum of twenty (20) new, full-time jobs
Wages: Minimum average annual salary of not less than one hundred twenty-five percent (125%) of the average annual state wage
Other requirements: Certification by the Mississippi Development Authority and an agreement with performance requirements and recapture; covers sales and use tax on component building materials and equipment for initial construction or expansion and on replacement hardware, software or other technology, plus income tax and franchise tax
How long it lasts: Ten (10) years after certification
Sunset: none stated
Latest change: Last amended by 2019 SB 2271 (approved by the Governor March 22, 2019), which lowered the thresholds and added income and franchise taxes; later amendment bills died (2024 SB 3106; 2025 SB 3168 and HB 1239)

Missouri: Data Center Sales Tax Exemption Program (data storage centers) (active)

Minimum investment: New facility: at least twenty-five million dollars within up to thirty-six consecutive months of conditional approval; expanding facility: net new investment of at least five million dollars within up to twelve consecutive months
Jobs: New facility: at least ten new jobs within thirty-six months; expanding facility: at least five new jobs within twenty-four months
Wages: Average wage of the new jobs must equal or exceed one hundred fifty percent of the county average wage
Other requirements: Facility engaged primarily in NAICS 518210 or 519130; covers state and local sales and use tax on electrical energy, gas, water and other utilities, machinery, equipment and computers, and construction materials; exemption capped at the projected net fiscal benefit to the state over ten years; agreement with repayment penalties; recipients are not eligible for business recruitment tax credits
How long it lasts: Up to fifteen years (new facility) or up to ten years (expanding facility)
Sunset: none stated
Latest change: Created 2015 (S.B. 149); current version effective August 28, 2018 (2018 S.B. 975 and 1024)

Montana: Class seventeen property: reduced property tax rate for qualified data centers (active)

Minimum investment: Total cost of land, improvements, personal property and software of at least $150 million (300,000 square feet, construction commencing after June 30, 2017) or at least $50 million invested during a 48-month period (25,000 square feet of new or expanded area, construction commencing after January 1, 2019)
Other requirements: One or more buildings under single ownership on contiguous parcels. Class seventeen property is taxed at 0.9% of market value. Includes cooling, power infrastructure, substations, backup generation and, since 2025, onsite electrical generation and storage commencing operation after May 13, 2025 (at least 80% onsite use; taxed at the class seventeen rate for 10 years). Dedicated communications infrastructure qualifies if construction commences after June 30, 2017 and before July 1, 2037.
How long it lasts: Ongoing classification; dedicated communications infrastructure and onsite generation at the class seventeen rate for 10 years from start of construction
Sunset: none stated (communications infrastructure must commence construction before July 1, 2037)
Latest change: Amended by Sec. 4, Ch. 678, L. 2025 (adds onsite electrical generation and storage systems commencing operation after May 13, 2025)

Nebraska: ImagiNE Nebraska Act personal property tax exemption for data centers (active)

Minimum investment: Before the end of the ramp-up period: cumulative investment in qualified property of at least five million dollars with at least thirty new employees, or at least fifty million dollars with average compensation of at least 150% of the Nebraska statewide average hourly wage and health coverage offered
Jobs: Thirty new employees under the five million dollar tier; none stated under the fifty million dollar tier
Wages: Under the fifty million dollar tier, average compensation of at least one hundred fifty percent of the Nebraska statewide average hourly wage
Other requirements: ImagiNE Nebraska Act application and agreement; exempts all personal property that constitutes a data center placed in service after the complete application; annual claim filed with the Tax Commissioner by May 1; sequential applications under NAICS 518210 allowed
How long it lasts: From the first January 1 after the required levels are exceeded through the ninth December 31 after the first year the property qualifies
Sunset: No new applications after December 31, 2030
Latest change: Section 77-6831 last amended by Laws 2026, LB1165; those changes apply to applications filed on and after April 17, 2026

Nevada: Partial abatement of personal property taxes at a new or expanded data center (active)

Minimum investment: $25,000,000 cumulative capital investment in each county within 5 years (abatement of 1 to 10 years); $100,000,000 (abatement of 10 to 20 years)
Jobs: 10 full-time employees who are Nevada residents within 5 years (up to 10 years); 50 (10 to 20 years)
Wages: Average hourly wage at least 100 percent of the average statewide hourly wage; health insurance plan including dependent coverage within 2 years
Other requirements: Abatement may not exceed 75 percent of personal property taxes payable by the data center each year. Same eligibility as NRS 360.754.
How long it lasts: At least 1 year but not more than 10 years, or at least 10 years but not more than 20 years for the higher tier
Sunset: No applications approved if received on or after January 1, 2036 (NRS 360.754); section effective through December 31, 2056
Latest change: NRS 360.754 last amended 2021

Nevada: Partial abatement of sales and use taxes on eligible machinery or equipment used at a new or expanded data center (active)

Minimum investment: $25,000,000 cumulative capital investment in each county within 5 years (abatement of not more than 10 years); $100,000,000 (abatement of 10 to 20 years)
Jobs: 10 full-time employees who are Nevada residents within 5 years (up to 10 years); 50 (10 to 20 years)
Wages: Average hourly wage at least 100 percent of the average statewide hourly wage; health insurance plan including dependent coverage within 2 years
Other requirements: Data center must continue in operation at least 10 years; at least 50 percent of construction employees Nevada residents unless waived; abatement of Local School Support Tax requires approval by two-thirds of the Board of Economic Development; colocated businesses with contracts of at least 2 years may also receive an abatement. Abatement is from taxes imposed by NRS chapter 374.
How long it lasts: Not more than 10 years, or not more than 20 years for the higher tier
Sunset: Office of Economic Development shall not approve applications received on or after January 1, 2036; section effective through December 31, 2056
Latest change: NRS 360.754 last amended 2021 (Statutes of Nevada 2021, p. 2298); NRS 374.356 added 2015

New Jersey: Next New Jersey Program - AI (tax credits; eligible businesses include the large-scale artificial intelligence data center industry) (suspended)

Minimum investment: $100 million at the qualified business facility (including multiple locations)
Jobs: 100 new full-time jobs in New Jersey
Wages: Each job paid at least 120% of the county median salary
Other requirements: Business or division primarily engaged in the artificial intelligence industry or the large-scale artificial intelligence data center industry; collaboration with a New Jersey research university or technology startup, incubator or accelerator; more than 50% of employees or revenue in AI-related activities. Credit is the lesser of 0.1% of capital investment times new full-time jobs, 25% of capital investment, or $250 million; transferable.
How long it lasts: Awarded tax credits are disbursed over five years
Sunset: none stated; program authorization fully allocated
Latest change: P.L. 2026, c. 77 (S4390), signed August 27, 2026, reduced total authorized credits from $500 million to $250 million; NJEDA states the credits are fully allocated and it is no longer accepting new applications.

North Carolina: Sales and use tax exemption for computer software sold to a datacenter operator and used within the datacenter (active)

Other requirements: Software sold to a person who operates a datacenter and used within the datacenter.
How long it lasts: None stated
Sunset: none stated

North Carolina: Sales and use tax exemption for electricity and eligible business property at an eligible internet datacenter (active)

Minimum investment: At least $250,000,000 in private funds in real property or eligible business property within five years after commencement of construction (written determination by the Secretary of Commerce)
Other requirements: Facility used primarily by a business in software publishing (NAICS 511210) or internet activity (NAICS 519130); single or contiguous commonly owned parcels; located in a county designated an enterprise tier one, two or three area or development tier one or two area at the time of application.
How long it lasts: None stated
Sunset: none stated

North Carolina: Sales and use tax exemption for electricity and datacenter support equipment at a qualifying datacenter (active)

Minimum investment: At least $75,000,000 in private funds invested by owners, users or tenants within five years of the first real or tangible property investment on or after January 1, 2012 (written determination by the Secretary of Commerce)
Wages: Wage standard for the development tier area: none in tier one; tiers two and three, average weekly wage at least 110 percent of the lesser of the statewide average wage and 90 percent of the county average wage; health insurance for full-time employees (at least 50 percent of premiums)
Other requirements: Datacenter support equipment includes electrical, HVAC and mechanical systems, servers, storage, network equipment and software. Exemption forfeited if the investment is not timely made.
How long it lasts: None stated
Sunset: none stated
Latest change: G.S. 105-164.13 most recently amended by S.L. 2025-25 and S.L. 2025-58 (amended subdivisions not individually confirmed)

North Dakota: Sales and use tax exemption for enterprise information technology equipment and computer software used in a qualified data center (active)

Other requirements: Newly constructed or substantially refurbished facility of one or more buildings with an aggregate of fifteen thousand square feet or more, no fewer than fifty percent used for data processing; single or contiguous parcels; construction completed or substantially refurbished after December 31, 2020; fire suppression and enhanced security; certified by the tax commissioner. Covers servers, cooling, power infrastructure, substations, backup generation, battery systems and software, including upgrades and replacements.
How long it lasts: None stated
Sunset: none stated

Ohio: Data center sales and use tax exemption (computer data center equipment) (suspended)

Minimum investment: At least one hundred million dollars in capital investment at the project site during a cumulative period (six consecutive calendar years for projects beginning in 2013, four for 2014, three for projects beginning in or after 2015)
Wages: At least one million five hundred thousand dollars in annual compensation subject to withholding paid to employees at the project site for each year beginning in the 25th month after the agreement
Other requirements: Discretionary agreement with the Tax Credit Authority; exemption may be complete or partial, up to one hundred per cent, and covers equipment, electrical and cooling systems, and building and construction materials sold to contractors for incorporation into the data center.
How long it lasts: Term determined by the tax credit authority
Sunset: none stated
Latest change: On May 27, 2026 the Governor directed the Ohio Tax Credit Authority to pause consideration of new data center tax exemption requests while the General Assembly's Joint Data Center Committee studies data center growth; the Authority stopped accepting new proposals after its next scheduled meeting (Governor's release: https://content.govdelivery.com/accounts/OHIOGOVERNOR/bulletins/419304d). Latest legislation listed for the section: House Bill 96 (136th General Assembly), effective September 30, 2025. S.B. 374 (136th General Assembly, as introduced) would prohibit new exemptions.

Oregon: Enterprise zone property tax exemption: moratorium on new data center authorizations and no extended exemption periods for data centers (suspended)

Other requirements: An eligible business firm may not be authorized under ORS 285C.140 for property consisting of a data center project before 90 days after the 2027 regular session adjourns sine die. The enterprise zone exemption period may not be extended beyond three years under ORS 285C.160 for qualified property used in operating a data center, and alternative extended-abatement terms do not apply to data center property. The general enterprise zone program is not data center specific.
How long it lasts: Moratorium runs until 90 days after the 2027 regular session adjourns sine die
Sunset: Moratorium section repealed January 2, 2029
Latest change: HB 4084 (2026 regular session), Chapter 50, takes effect on the 91st day after sine die adjournment of the 2026 session

Pennsylvania: Computer Data Center Equipment Exemption Program (active)

Minimum investment: At least $75,000,000 of new investment on or after January 1, 2022 (county population of 250,000 or fewer); at least $100,000,000 (county population more than 250,000), by the fourth anniversary of certification
Jobs: 25 new jobs (county population of 250,000 or fewer); 45 new jobs (more than 250,000)
Wages: Annual compensation of at least $1,000,000 to employees at the certified site for each year after the fourth anniversary of certification
Other requirements: Exemption applies only against the state sales tax rate of 6 percent. As of August 18, 2026, under Executive Order 2026-05, applications must include an executed Consent Order and Agreement with the Department of Environmental Protection implementing the GRID standards. Excludes certain internal-use telecommunications provider data centers.
How long it lasts: Certification valid for 25 full calendar years following the year of application, subject to compliance
Sunset: none stated
Latest change: House Bill 2198 of 2025-2026, which repeals Article XXIX-D, passed the House June 25, 2026 (197-5) and was referred to Senate Finance June 26, 2026. Executive Order 2026-05 added GRID standards consent order requirement from August 18, 2026.

South Carolina: Sales and use tax exemption for datacenter computer equipment, software and electricity (active)

Minimum investment: At least fifty million dollars in real or personal property by a taxpayer over a five year period, or a minimum aggregate of seventy-five million dollars by one or more taxpayers over a five year period
Jobs: At least twenty-five full-time jobs at the facility, maintained for three consecutive years after certification
Wages: Average cash compensation of one hundred fifty percent of the per capita income of the State or of the county, whichever is lower
Other requirements: Facility with concurrently maintainable power and cooling, redundant capacity components and multiple distribution paths; certified by the Department of Commerce. Covers computers, computer equipment, software, and electricity used by the datacenter and eligible business property (electrical generation, transformation and distribution, including exterior substations).
How long it lasts: Applies to datacenters certified before January 1, 2032; continues for an additional ten year period for taxpayers certified by December 31, 2031
Sunset: Applies only to datacenters certified before January 1, 2032; subitem repealed at the end of the additional ten year period
Latest change: 2024 Act No. 131 and 2025 Act No. 45 amended 12-36-2120 but, per the code's Effect of Amendment notes, did not change item (79)

Tennessee: Reduced 1.5% state sales tax rate on electricity for qualified data centers (active)

Minimum investment: Capital investment of more than $100,000,000 over a 3-year period
Jobs: At least 15 net new full-time employee jobs during the investment period
Wages: Jobs pay at least 150% of the state's average occupational wage
Other requirements: Partial exemption: electricity sold to a qualified data center is taxed at a reduced state rate of 1.5%, using the Qualified Data Center exemption certificate.
How long it lasts: None stated
Sunset: none stated

Tennessee: Qualified data center sales and use tax exemption for computers, software, backup power infrastructure and cooling equipment (active)

Minimum investment: Capital investment of more than $100,000,000 over a 3-year period
Jobs: At least 15 net new full-time employee jobs during the investment period
Wages: Jobs pay at least 150% of the state's average occupational wage
Other requirements: Data center is a building or buildings, newly constructed, expanded or remodeled, housing high-tech computer systems and related equipment. Application required for each qualified data center location; exemption certificate used for purchases. Covers computers, software and computer related devices including repair, installation, warranties and service contracts, plus backup power infrastructure and cooling equipment.
How long it lasts: None stated
Sunset: none stated
Latest change: Pub. Ch. 886 (2024), effective May 1, 2024, extends qualified data center status to a data center transferred to an affiliate in a reorganization after meeting the investment and job requirements

Texas: State sales and use tax exemption for qualifying data centers (active)

Minimum investment: At least $200 million capital investment in the data center over a five-year period beginning on the certification date
Jobs: At least 20 qualifying jobs in the county, not including jobs moved from another Texas county
Wages: Qualifying job pays at least 120 percent of the county average weekly wage
Other requirements: At least 100,000 square feet in a single building or portion of a single building; single qualifying occupant; uninterruptible power, generator backup, fire suppression and enhanced security; not used primarily by a telecommunications provider; not eligible if subject to a former Chapter 313 value limitation agreement. Exempts electricity, electrical and cooling systems, emergency generators, servers, storage, network equipment, racks, software and related systems from the 6.25 percent state tax only; local sales and use taxes apply. Certification and registration numbers issued by the Comptroller.
How long it lasts: 10 years from certification for $200 million to less than $250 million invested; 15 years for $250 million or more
Sunset: none stated
Latest change: Amended by Acts 2025, 89th Leg., R.S., Ch. 204 (H.B. 1620), Sec. 19.002(a), eff. September 1, 2025

Texas: State sales and use tax exemption for qualifying large data center projects (active)

Minimum investment: At least $500 million capital investment in the project over a five-year period (on or after May 1, 2015)
Jobs: At least 40 qualifying jobs in the county, not including jobs moved from another Texas county
Wages: Qualifying job pays at least 120 percent of the county average weekly wage
Other requirements: One or more buildings with at least 250,000 square feet on a single parcel or contiguous commonly owned parcels; single qualifying occupant; agrees to contract for at least 20 megawatts of transmission capacity; not eligible if subject to a former Chapter 313 value limitation agreement. Same categories of exempt property as 151.359, state tax only.
How long it lasts: 20 years from certification
Sunset: none stated
Latest change: Amended by Acts 2025, 89th Leg., R.S., Ch. 204 (H.B. 1620), Sec. 19.002(b), eff. September 1, 2025

Utah: Sales and use tax exemption for machinery and equipment purchased or leased by a qualifying data center or its occupant (active)

Other requirements: Qualifying data center: new operation constructed on or after July 1, 2016; one or more buildings totaling 150,000 or more square feet; owned or leased, with the land, by the operator or a person under common ownership. Covers machinery, equipment and normal operating repair or replacement parts with an economic life of one or more years.
How long it lasts: None stated
Sunset: none stated
Latest change: Section 59-12-104 amended by Chapter 433, 2026 General Session; the data center item is unchanged in the current version and the versions effective January 1, 2027 and January 1, 2028

Virginia: Retail sales and use tax exemption for data center computer equipment and enabling software (active)

Minimum investment: New capital investment on or after January 1, 2009, of at least $150 million ($70 million in a distressed locality)
Jobs: At least 50 new jobs by the operator and tenants collectively on or after July 1, 2009 (10 new jobs in a distressed locality)
Wages: New jobs pay at least one and one-half times the prevailing average wage in that locality
Other requirements: Memorandum of understanding with the Virginia Economic Development Partnership Authority required; covers servers, routers, enabling hardware and software, chillers and backup generators; excludes general building improvements and fixtures; annual reporting. Subdivision 19 extension: an operator investing at least $35 billion and creating 1,000 new full-time jobs (100 at one and one-half times the statewide prevailing wage) before July 1, 2035 may use the exemption through June 30, 2040; at least $100 billion and 2,500 jobs before July 1, 2040, through June 30, 2050.
How long it lasts: Beginning July 1, 2010, and ending June 30, 2035, with extensions to June 30, 2040 or June 30, 2050 under subdivision 19
Sunset: June 30, 2035 (extensions to 2040 and 2050 for qualifying operators)
Latest change: Latest chapters in the section history are 2023, cc. 144, 671, 678 (subdivision 19 extensions); no 2024 to 2026 chapters are listed

Washington: Sales and use tax exemption for eligible server equipment and power infrastructure at rural computer data centers (active)

Jobs: Within six years, net increase of 35 family wage employment positions or, if lower, three for each 20,000 square feet newly dedicated to working servers
Wages: Family wage positions: at least 125 percent of county per capita personal income (certificates issued on or after June 9, 2022), with employer health insurance
Other requirements: Located in a rural county (RCW 82.14.370) at the time of application; at least 20,000 square feet dedicated to working servers; commencement of construction after June 30, 2015, and before July 1, 2035; at least 100,000 square feet combined for facilities built after July 1, 2015; green building certification within three years for new construction; annual tax performance report. Use tax counterpart in RCW 82.12.986.
How long it lasts: Exemption certificates expire two years after issuance unless construction has commenced
Sunset: No new exemption certificates on or after July 1, 2036; exemptions expire July 1, 2048
Latest change: Amended by 2026 c 266 s 2 (effective July 1, 2026) and 2025 c 411 s 4. Current text ends the refurbishment pathway: no new certificates for refurbished data centers on or after July 1, 2026, and that exemption expires July 1, 2026.

Washington: Sales and use tax exemption pilot for eligible server equipment and power infrastructure at data centers in counties with populations over 800,000 (active)

Jobs: Within six years, three family wage employment positions for each incremental 20,000 square feet newly dedicated to working servers
Wages: At least 125 percent of county per capita personal income, with employer health insurance
Other requirements: County population over 800,000 (April 1, 2021 OFM estimates); at least 20,000 square feet for working servers; minimum of 1.5 megawatts of available power for customers; modular or container units do not qualify; data centers refurbished on or after July 1, 2026 do not qualify. Use tax counterpart in RCW 82.12.9861.
How long it lasts: Exemption certificates expire two years after issuance unless construction has commenced
Sunset: No new exemption certificates on or after July 1, 2028; exemptions expire July 1, 2038
Latest change: Amended by 2026 c 266 s 3 (effective July 1, 2026), which excludes data centers refurbished on or after July 1, 2026

West Virginia: High impact data center property tax treatment (state valuation, tax increment distribution, no PILOT or TIF) (active)

Other requirements: High impact data center: critical IT load in the aggregate of 90 megawatts total or higher, placed into service on or after July 1, 2025. Property is returned to and valued by the Board of Public Works; regular levy tax on the increment above the base assessed value is distributed 50 percent to the Personal Income Tax Reduction Fund, 30 percent to the situs county, 10 percent to all counties per capita, 5 percent to the Economic Enhancement Grant Fund and 5 percent to the Electric Grid Stabilization and Security Fund. No payment in lieu of taxes or tax increment financing may be entered into for this property. This is a tax treatment, not an abatement.
How long it lasts: For so long as the high impact data center exists
Sunset: December 31, 2055
Latest change: Created by Enrolled Committee Substitute for House Bill 2014 (2025 Regular Session, certified microgrid program), effective July 11, 2025

Wisconsin: Sales and use tax exemption for property used at a qualified data center (active)

Minimum investment: Qualified investment within 5 years of certification: $150,000,000 (county population greater than 100,000); $100,000,000 (greater than 50,000 and not more than 100,000); $50,000,000 (not more than 50,000)
Other requirements: Certified by the Wisconsin Economic Development Corporation; covers tangible personal property used exclusively for development, construction, renovation, expansion, replacement, repair or operation of the qualified data center (servers, networking, racks, cabling, electrical and cooling), water cooling or conservation systems, and property sold to construction contractors that becomes a component of the data center. Eligible costs are expenditures after October 1, 2023. Certification revoked with recapture if the investment is not met.
How long it lasts: None stated
Sunset: none stated
Latest change: Created by 2023 Wisconsin Act 19 (238.40 history lists no later amendment)

Wyoming: Sales tax exemption for data processing services center computer equipment, software, power and cooling equipment (active)

Minimum investment: Initial total capital asset investment of not less than $5,000,000 (computer equipment and software) or not less than $50,000,000 (uninterruptable power supplies, back-up generators, specialized HVAC and air quality equipment) at a physical location in Wyoming
Jobs: Wyoming Business Council certification that the purchaser has created or will create a number of jobs appropriate to the size and stage of development of the center
Other requirements: Aggregate qualifying purchases must exceed two million dollars ($2,000,000.00) in a calendar year for each exemption; tax accrued and remitted if the annual threshold is not met; multi-tenant facilities may meet requirements in the aggregate.
How long it lasts: None stated
Sunset: none stated

Coverage: 51 rows covering 37 states. A row is a data center specific state tax incentive (or a data center specific change to a general incentive program) confirmed on an official statute, session law or agency page on 2026-10-16.
Source: state statutes and revenue department pages
Last updated: October 16, 2026, 51 incentives

How this was built

Each row is a state tax incentive that names data centers, confirmed on the statute, session law or the administering agency's page. Thresholds and terms are quoted as written. Local abatements, payments in lieu of taxes and bond financing are out of scope unless a state statute creates a data center option for them.

See which facilities use Texas's exemption in the Texas data center database, and bills that would change these programs in the bills tracker.

Limits of this data

Statutes change. A suspension or new limit can take effect between our checks; the statute link shows the current text.
Thresholds are summaries of long statutes, and many programs have county tiers or definitions that matter. Read the statute before relying on a term.
States with no row were checked, but for some the check was a targeted search rather than a full statute review; the CSV notes which.
General incentives that data centers can use but that do not name them (for example broad manufacturing exemptions) are not included.

Sources

Frequently asked questions

Which states give data centers tax breaks?

In this dataset, 37 states have a data center specific state tax incentive. Filter the table by status to see which are active, suspended or repealed.

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